Volume 9, Issue 1, January – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
The Relation Between the Cultural Environment of an
Organization and its Commitment to Goals
Riane Johnly Pio, Johny Revo Elia Tampi, Danny D.S. Mukuan
Study Program in Business Administration, Sam Ratulangi University, Manado, Indonesia
Abstract:- This study's objective is to comprehend
managerial style, organizational dedication, and
individual traits of cooperative managers. As a
cornerstone of Indonesian economy, cooperatives are
becoming less favorable in comparison to other economic
actors like state-owned enterprises (SOEs) and private
businesses. Strengthening the national economy, in which
the majority of participants are economically poor, is one
of the goals of Indonesia's cooperatives. This study
attempts to comprehend how human resources run a
cooperative and to provide appropriate solutions based on
organizational culture components that align with regional
circumstances. SEM-PLS was used for the analysis after a
questionnaire was used to gather the data. The findings
demonstrate that organizational commitment and culture
were highly influenced by individual traits. Company
commitment was not, however, significantly impacted by
company culture. According to this study, To be able to
strengthen organizational dedication, it is imperative to
enhance organizational culture by emphasizing values of
mutual cooperation. In terms of human traits, cooperative
managers and management with uplifting dispositions,
moral principles, and cooperative mindsets must dedicate
themselves to the cooperative's prosperity. Sustaining the
existence of cooperatives is crucial in the face of aggressive
market penetration by private commercial entities.
Keywords:- SEM, Individual Features, Organizational
Commitment, Organizational Culture.
I. INTRODUCTION
Cooperatives, as one of the economic actors, continue to
experience degradation compared to the development of the
private business sector and State-Owned Enterprises (SOEs).
They are expected to be more capable of playing a role in the
economic development to drive a strong and independent
people's economy. However, they are even left behind by other
economic actors such as the private and SOE sector [1]. It is
evident in the imbalance between the sectors mentioned above
in dominating the economy in Indonesia [2]. The ability to
compete in the cooperative sector is quite difficult in facing
the aggressiveness of the private sector.
The government keeps supporting any effort to help the
cooperatives to become the economic pillars in Indonesia. It is
done by increasing the cooperatives’ capacity of human
resources, such as through trainings in Balatkop [3].
Specifically, in the province of North Sulawesi, the Micro,
Small and Medium Enterprises (MSME) and Cooperatives
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Agency is asked to continue to empower the MSME human
resources through their participation in the implementation of
education and training in the Balatkop of Manado [4]. In
addition, there are also efforts to encourage the society to love
or have an interest in the cooperatives which are done by
Dekopin of North Sulawesi [5]. However, behind these efforts,
according to the former Head of MSEME and Cooperative of
North Sulawesi – Mr. Sanny Parengkuan, 60% of a total of
5.300 cooperatives in North Sulawesi failed to continue
because of frequent disputes between management [6].
There are challenges and obstacles faced by the
cooperatives to develop, especially in institutional aspects
such as trust, poor member participation, less functionating
organizational equipment, and inadequate supervision and
business aspects. The business which has not been able to take
opportunities properly is caused by poor quality and
commitment of managers, inadequate business facilities and
weak capital [7]. Although this opinion was stated almost two
decades ago, but to date, the current condition is not much
different.
II. THEORITICAL FRAMEWORK
A. Individual Characteristics
Values are guidelines and beliefs that a person uses when
dealing with a decision-making situation [13]. They are used
as a basic reason for doing certain acts or in certain conditions
which are more socially preferred than the opposite way [16].
They are related to attitudes, where they help as a way to
regulate attitudes. In relation to decision making, values can
be implemented in efforts to set goals, develop and choose
alternatives [13]. Implementation of the cooperatives’ values
is reflected in the principles of cooperatives as an embodiment
of the identity of cooperatives [17], [14], a guide to achieving
the goals [18] and a guide in the implementation of the
cooperatives’ values into daily living practices [14].
Attitudes are mental states that are learned and organized
through experience, producing a specific influence on one's
response to other people, objects, and related situations [13].
It is a positive or negative feeling directed at a goal [19]. It
represents an evaluative statement, both pleasant and
unpleasant, towards any object, individual or event [16].
B. Organizational Culture
Organizational culture is interpreted by many researchers
according to different backgrounds and contexts. There seems
to be no consensus among researchers as to the exact definition
for the construct of organizational culture [20]. Therefore,
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Volume 9, Issue 1, January – 2024 International Journal of Innovative Science and Research Technology
there are several opinions that form the basis of this paper.
Organizational culture is an arrangement of shared meanings,
implicit assumptions that are accepted as is held by a group
and determine how they perceive, think and react about
various things in their environment [21]. It has been viewed as
a collection of standards, values, and presumptions that
members of the organization share. [22]. It refers to the shared
meaning of a system owned by members which distinguishes
one organization from another [12]. Nevertheless, no
definition of organizational culture can be used universally
[23].
This study used the managers and management of
cooperatives as the research object. Therefore, the definition
of organizational culture used is based on an opinion [24] It
claims that managers can utilize organizational culture as a
crucial tool to directly represent the organization and the
values and behaviors that form all organizational behavior. In
order to accomplish their intended aims, organizations adhere
to the underlying norms, practices, and morality as well as
specific traditions. [25], and organizational culture continues
to be a crucial component of management concepts. [26].
However, organizational culture can be implemented by
understanding the values believed by the organization. These
cultural principles manifest themselves in a variety of ways,
including four distinct cultural types: market, adhocracy, clan,
and hierarchy. [27]. Additionally, organizational culture is
divided into four categories based on two dimensions:
socialization and solidarity, and the categories include
mercenary, fragmented, network, and communal cultures [28].
Conversely, organizational culture has seven primary features,
according to [12]: 1) Innovation and taking chances; 2) Detail-
oriented; 3) People-oriented; 4) Team-oriented; 5) Aggressive;
and 6) Stability-oriented.
C. Organizational Commitment
An organization that is committed to all members to
carry out their duties and work within a certain period of time
will inevitably achieve their pre-determined goals. It is
because people who have commitments tend not to stop and
accept work [13]. In general, commitments can be identify on
five universal forms related to work commitments: 1)
Protestant work ethics (PWE); 2) dedication to one's job; 3)
engagement in one's work; 4) affective organizational
commitment; and 5) ongoing organizational commitment [29].
Although alternative concepts had been proposed by other
researchers, there are three dimensions developed and they are
more widely accepted [30]: affective, normative, and ongoing
commitment [31].
Organizational members or managers who are committed
to the work unit will show positive attitudes and behavior and
tend to maintain their membership as a form of pride in the
work unit that is considered capable of meeting their
expectations. The result of this culture is to emphasize the
existence of work ethics that every employee needs to have.
[32] The managers tend to like work and get satisfaction from
it. They have a stronger commitment to the work unit and its
objectives. Commitment will also remain as a form of loyalty.
Work units or organizations with a culture that is strongly
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ISSN No:-2456-2165
oriented towards human relations are characterized by a
concern for commitment [33]. Most commonly, organizational
commitment is described as follows: (1) a strong desire to stay
in a certain organization; (2) a readiness to make significant
efforts on the organization's behalf; and (3) a conviction in the
acceptance, values, and objectives of the organization. [34].
Cooperatives are faced with a problem of increasing
organizational commitment from their members [35]. The
member commitment to their cooperatives is an important
issue. In addition to being able to reduce the “free rider”, it
also becomes a binder that allows business membership and
volume to be maintained, even if the business climate is
uncertain or changing [36]. Organizational commitment is
giving individual contributions to the organization. It is based
on three dimensions developed by Meyer and Allen which
consist of: 1) Affective commitment is the identification,
emotional connection, and participation with the organization;
2) Normative commitment, which is the conviction that
staying in the company is required and that the course of action
is morally correct, and 3) continuing commitment, which is
based on losses associated with the dismissal of personnel
from the organization. [34].
Below are several hypotheses that can be proposed in
research:
H1: Organizational culture and individual traits are strongly
and positively connected.
H2: Individual traits and organizational commitment are
significantly and favorably correlated.
H3: The commitment and culture of a company have a strong,
beneficial relationship.
III. METHODS
This present research was classified as a correlational
survey (“ex post facto”) study. It was a survey study because
this study generalized the population based on research
samples from the population [37], [38], [39]. It was a
correlational study because the referred description,
interpretation, hypotheses testing and conclusion were used to
determine whether the observed variables had a certain
relationship as proposed theoretically earlier. It was an “ex
post facto” study because there was no manipulation or control
of the variables observed and the events had occurred. This
research was conducted in several types of cooperatives such
as Village Unit Cooperatives, Civil Servants Cooperatives,
and other Functional Cooperatives in Manado.
The management and managers of the 900 cooperatives
in Manado comprised the study's population. [40]. However,
most of the cooperatives registered at the MSME Agency of
Manado were no longer in operation. Therefore, based on a
survey conducted by researchers, it was found that only 31
cooperatives which were still active. Thirteen managers and
cooperative management participated in this study in total.
PLS-SEM was used to analyze the data because it met the
minimal sample requirement of 30 respondents [41]. A five-
point Likert scale questionnaire with two items for each of
nine indicators from strongly disagree to strongly agree was
used to gather the results.
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Volume 9, Issue 1, January – 2024
IV. RESULTS AND DISCUSSION
The two models used in the SEM analysis were the outer
and inner models. The value of outer loading for reflexive
International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
indicators and outer weight for formative indicators expressed
the weight of each indication as a measure of each latent
variable. The indicator having the largest outer loading or
outer weight was used to measure the strongest variable, or
dominating.

TABLE I. STRUCTURAL MODEL OF PLS-SEM: DIRECT EFFECT

Variables Relationship
No.
relationship coefficient P-Value conclusion
Individual characteristics towards has a noteworthy and
1. 0.593 <0.000
organizational culture favorable impact
Interesting characteristics towards has a notable and
2. 0.488 <0.031
organizational commitment favorable impact
Has a positive and
3. Organizational commitment and its culture 0.214 <0.374
insignificant effect
Data processing result.
a.

Fig. 1. Result of SEM-PLS Analysis.

Table 1. and Figure 1. show the findings of the
investigation of the structural model's direct effect, along with
the following justification: (1) The structural coefficient for
the relationship between individual traits and organizational
culture is 0.593, with a P-value of less than 0.000. Thus, it may
be said that there is a noteworthy and favorable influence. as
the P-value is < 0.05. This indicated that a high or low level of
individual characteristics could influence the high or low level
of organizational culture. Consequently, it is possible to
validate the theory that claims that individual traits and
corporate culture have a strong and positive relationship; (2)
The structural coefficient and P-value of the relationship
between individual traits and organizational commitment are
0.488 and <0.031, respectively. Consequently, it may be said
that there is a considerable influence as the P-value is < 0.05.
This implied that individual characteristics may have a large
or low impact on the amount of organizational commitment.
Consequently, it is possible to support the hypothesis that
claims that individual traits and organizational commitment
have a substantial and positive relationship; and (3) The
structural coefficient and P-value for the relationship between
organizational culture and organizational commitment are
0.214 and <0.374, respectively. Thus, it may be said that there
isn't much of an impact as the P-value is > 0.05. This suggested
that a stronger organizational commitment level would not
follow from a higher organizational culture level. Therefore,
there is no evidence to support the idea that suggests there is a
substantial, positive association between organizational
culture and organizational commitment.
Individual characteristics were an inseparable part of
individual behavior which was reflected through personality
[12]. They were inherited and described the abilities, skills,
experience and background existed in each individual [42].
The individuals who joined an organization carried the
organization values and became part of their character. These
values were used a basis for understanding the attitudes and
motivations. They influenced the individuals’ perspectives
and simultaneously affected their attitudes and behavior when
they joined an organization [12]. The values and beliefs
possessed by individuals could lead to a success in
organizations [34].
Referring to an opinion [22] stating that organizational
culture was a set of values, it could be concluded that it could
be used as a basis to provide indirect justification that
individual characteristics had a relationship with
organizational culture. It was because the individual
characteristics were parts of leadership, and leadership
actually created the organizational culture [43]. In the
beginning of the process of creating culture [21], leadership
and culture were interconnected [44]. Thus, the individual
characteristics were implicitly related to the organizational

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Volume 9, Issue 1, January – 2024 International Journal of Innovative Science and Research Technology
culture through the values and beliefs of members and leaders
of organizations.
This study found that individual characteristics influence
organizational commitment. The present study's findings are
consistent with those of [45], which found a correlation
between individual traits and organizational commitment.
Furthermore, a study [46] discovered a mediating association
between job satisfaction and individual traits and
organizational commitment. This strengthened a theory which
explained that individual characteristics were certain
characteristics possessed by an individual who distinguished
them from others and could be seen from the personality traits,
values and attitudes as basic abilities that affected his/her
behavior in the workplace [12]. The behavior in the workplace
was manifested as organizational commitment in the form of
affective, normative and sustainable commitments [47]. The
individual characteristics influenced by individual factors
could strengthen the affective organizational commitment
[48]. In a different perspective where the individual
characteristics were manifested in the leaders’ behavior, there
was a study which found that Affective, normative, and
sustained organizational commitment were positively
correlated with the leadership used in the organization. [49].
It was discovered that organizational commitment was
not significantly impacted by the culture of the organization.
It is not in line with a previous research [50] They discovered
that organizational commitment was influenced by
organizational culture. These different research findings
indicated that one organizational culture might not be
applicable in other places. There was also common
misconception which assumed that all organizations had the
same culture [51].
Each organization had different organizational culture
due to differences in philosophies, norms, rules, organizational
climate and dominant values. Therefore, it underlay that an
organization had a strong or a weak culture. This present study
was done in 31 (thirty-one cooperatives) and it was obvious
that each of them had different cultural characteristics. The
findings of this inquiry, however, are in line with an
organizational culture study [48], which demonstrated that
organizational psychology research was still mapping the
elusive relationship between organizational culture and
organizational commitment. Moreover, an earlier study [52]
showed how fundamental inquiries into the nature and
perception of an organization helped the research community
to build a new language on organizational culture. This gave
researchers a thorough grasp of how the organizational culture
is currently doing as well as recommendations for how to
manage organizational change.
V. CONCLUSION
This study can be used to draw a number of conclusions,
including the following: 1) cooperative management and the
individual traits of managers has an impact on corporate
culture and organizational commitment; and 2) organizational
culture of cooperatives did not affect managers' and
cooperative managers' organizational commitment.
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ISSN No:-2456-2165
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